How can someone not support the Fair Tax Plan?

Question

The FairTax plan is a proposal that replaces all federal income & payroll based taxes with a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, & the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 1025) abolishes all federal personal & corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, & self-employment taxes & replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, & intelligent solution to the frustration & inequity of our current tax system.
The FairTax:Abolishes the IRS, Closes all loopholes & brings fairness to taxation, Ensures Social Security funding
check it out: fairtax.org

Answer 1

Sounds great to me, but this needs to be incorporated with restrictions on how the tax money is spent so that it goes for the benefit of the taxpayer, not those undeserving of the money, such as illegal immigrants. The line item veto would prevent special interest from clandestinely enacting legislation that would constantly cause this rate to increase without the consent of the taxpayers.

Answer 2

First, it doesn't close all loopholes.

Second, government has NEVER abolished a type of tax such as the income tax. What we'll end up with is both taxes.

Third, how will we support Social Security and Medicare if we don't collect tax revenues?

Fourth, we use the current tax code to encourage certain activities (such as owning a home and saving for retirement) and discourage other activities (smoking, etc.). How are you going to fold that into your sales tax plan?

Fifth, how do you make a sales tax progressive? It won't be progressive because the millionaire will pay the same sales tax when he buys a pack of gum as someone just over the poverty level. That's not progressive.

Sixth, even if it ensures Social Security fund, as you say, it will co-mingle the general revenue and Social Security revenue. This would have the impact of making SS a line item in the general budget which would be a HUGE mistake.

Seventh, if you think all the tax lawyers and accounts who work now to minimize the impact of taxes are just going to go into other lines of work you're being dangerously naive. They'll continue to work to find legitimate tax-minimizing strategies.

This will drive much of our consumption overseas and onto the Internet from international sources thereby evading the sales tax.

It's a stupid idea. That's how someone can not support the Stupid National Sales Tax Plan.

Answer 3

Because the fair tax would kill the economy
To even come close to providing enough revenue it would have to be at least 25% so prices jump 25% people stop buying. A new car,nope this one will last another 4 years, a new computer because a new OS came out, no I will keep this one until it dies. When the economy is based 70% on consumer spending that would not be good
The argument that prices would go down because other taxes were eliminated has no basis in truth, corporate taxes have been reduced before, prices never dropped

Answer 4

The "straightforward Tax Plan" is neither straightforward nor sensible: a million. it rather is a surprisingly regressive tax plan that penalizes human beings for being poor. those of decrease earnings will, out of necessity, spend a a ways greater effective share of their earnings than those of better earnings, so a intake tax will fall disproportionately on those with the least means to pay. 2. the wealthy will discover common techniques to eat which will keep away from the tax to an more advantageous degree, which includes spending their funds distant places the place it won't help our financial gadget. 3. mutually as individuals are greater accountable of overconsumption than those of the different nationality, and decreased intake would be good in terms of decreased degredation of aspects, we ought to continuously think of of ways this would result our financial gadget. 4. As stated above, a intake tax would tend to push human beings (to the quantity that they are in a position) to the two purchase in the underground financial gadget or purchase distant places to keep away from the tax. this would propose that tax sales would fall nicely in need of what the advocates of this methodology propose. the genuine time table of those at the back of the intake tax is to shift tax burden in direction of decrease earning mutually as concurrently lowering tax sales. it rather is anti-poor and anti-government. until eventually there is a few concensus on what spending we ought to continuously supply as much as pay for this, the concept encourages bigger public debt, thereby taxing destiny generations.

Answer 5

Isn't the "fair tax" like 38% or something? Seems pretty high. Depending on how much you bought, I think you would end up paying more taxes. Plus, it does not stimulate growth in our economy because people are less likely to buy things if they have a really high tax on each thing

Answer 6

Because the Fair Tax Plan would result in them paying more taxes. Who would voluntarily pay more taxes?

Life isn't fair. Expecting that people will behave "fairly" is unrealistic. People behave in their own best interest.

Answer 7

The simple answer is people have been feed commie ideas for so long that they would never get the idea of not "soaking" the rich. The Government would never go for it because it would remove some of their power!

Answer 8

There is no way most people can't support it but for those who are the takers in the world they will not because they don't want to pay more than nothing. They do not understand that somebody always pays and they always pay one way or the other.